Kiwi Property Group enters conditional agreement to sell Northlands Shopping Center

Kiwi Property Group has secured a conditional agreement to sell one of Christchurch’s busiest shopping centres.

Northlands Shopping Center in the Christchurch suburb of Papanui is one of the busiest shopping centers in the city.
Photo: CC BY-SA 4.0 / Michal Klajban

The large retail and diversified property investor has agreed to sell Northlands Shopping Center in Papanui for $160 million to Queenstown-based MP Holdings 5 ​​Limited, managed by Mackersy Property.

Kiwi Property said the sale was part of its ongoing strategy to focus on developing mixed-use town centers.

Mackersy would retain $9 million to complete the earthquake reinforcement work.

Kiwi Property said the deal was subject to its board of directors’ approval and the landlord’s consent to transfer a ground lease on part of the parking lot.

Kiwi Property would continue to manage Northlands on behalf of Mackersy and also agreed to provide vendor financing of up to $75 million to settle the deal, if necessary.

“The sale of Northlands is an important step in our capital recycling program. Proceeds from the transaction will be used to fund the company’s exciting mixed-use development pipeline and provide greater balance sheet flexibility,” said the managing director of Kiwi Property, Clive Mackenzie.

Mackersy was founded as Mitchell and Mackersy in 1982 in Dunedin and took on its current name in 2020.

According to its website, Mackersy manages 147 syndicate-owned commercial properties and 40 private commercial properties on behalf of more than 2,000 investors.

The sale of Northlands is expected to close no later than November 30.

Edwin S. Wolfe